EasyJet 2013 Annual Report Download - page 72

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easyJet plc Annual report and accounts 2013
70
During the year, the Audit Committee
has continued its detailed scrutiny of the
appropriateness of the Group’s system
of risk management and internal controls,
the robustness and integrity of the Group’s
financial reporting, along with both the internal
and external audit processes.
The Committee has devoted significant
time to reviewing these areas, which are
integral to the Group’s core management
and financial processes, as well as engaging
regularly with management, Internal Audit
and the external auditor.
The Committee has, where necessary, taken
initiative in requesting information in order
to provide the appropriate constructive
challenge for its role (further outlined in this
report). During the course of the year, the
information that the Committee has received
has been timely and clear and has enabled the
Committee to discharge its duties effectively.
The Committee is very supportive of the
latest UK Corporate Governance Code
recommendations. We have always strived
to achieve the aims of the Code and the best
practice recommendations of other corporate
governance organisations, and believe that the
revised Code allows the Audit Committee at
easyJet to further strengthen its role as a key
independent oversight Committee which has
also added value to the Group.
Role
The primary function of the Audit Committee
is to assist the Board in fulfilling its oversight
responsibilities. This includes reviewing the financial
reports and other financial information before
publication. In addition, the Committee also reviews
the systems of internal controls on a continuing
basis, with respect to finance, accounting, risk
management, compliance, fraud and audit that
management and the Board have established.
The Committee also reviews the accounting and
financial reporting processes; along with reviewing
the roles and effectiveness of both the internal
and external auditors. The ultimate responsibility
for reviewing and approving the annual and other
accounts remains with the Board.
The key terms set out that the Audit Committee will:
• serve as an independent and objective party to
monitor the quality and timeliness of the financial
reporting process and monitor the internal
financial control system;
• review and appraise the audit efforts of the
external auditors;
• provide an open line of communication between
the internal auditors, the independent external
auditors and the Board of Directors;
• confirm and assure the independence and
objectivity of the external auditors (in particular,
in the context of the provision of additional
services to the Company);
• review and ensure the effectiveness of the risk
management processes of the Company;
• review and monitor the effectiveness of the
internal audit function and management’s
responsiveness to any findings and
recommendations;
• assess potential conflicts of interest of Directors
on behalf of the Board; and
• report to the Board on how it has discharged
its responsibilities.
Governance
Audit Committee report
David Bennett
Chairman of the
Audit Committee
ANNUAL STATEMENT BY THE
CHAIRMAN OF THE AUDIT COMMITTEE